Unearned Discount

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Unearned Discount

A finance charge a lender assesses at the beginning of a loan, but only recognizes as income gradually over the loan's life. In accounting, the unearned discount is listed at first as a liability on the lender's balance sheet, but is slowly recognized as income.

References in periodicals archive ?

An automated business-rule capability with algorithm-based problem detection and exception-based reporting can monitor and highlight those exceptions likely to result in late pays, chargebacks or unearned discounts.

Using technology to trim revenue and receivables leakage: progressive companies are using a combination of order-to-invoice quality and collections automation technologies to arrest this growing source of profit erosion

I learned that un-repaid, unearned discounts could offset credits that would otherwise be turned over to the state under escheatment laws.

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Let's begin with the principle, that what we might call indirect or unintentional promotional funding (slotting allowances, abuse of unsaleables policies, unearned discounts, deductions and all the other dark demons of the 1980s and 1990s), which ought not to be the basis of profitability.

Why not stand "reality" on it's head? Perhaps it is time we ask the hard questions and, at the same time, prepare ourselves for those hard and sometimes awful answers. (Fast Forward)

If left unchecked, your company could be losing millions of dollars a year with these unearned discounts.

Prevent what you can, manage what you can't: the role of technology in deductions and dispute management